Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Delta Air Lines Inc., profitability ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Gross Profit Margin
- The gross profit margin demonstrated relative stability between 2017 and 2019, fluctuating slightly around the 56–58% range. However, there was a marked decline in 2020, dropping sharply to 37.44%, reflecting potential challenges in cost management or revenue generation. In 2021, the margin recovered partially, increasing to 51.85%, though it remained below pre-2020 levels.
- Operating Profit Margin
- The operating profit margin followed a downward trend from 14.82% in 2017 to 11.85% in 2018, before improving to 14.08% in 2019. A significant downturn occurred in 2020, with the margin plunging to -72.94%, indicative of substantial operational losses. By 2021, the margin showed recovery signs, returning to a positive value of 6.31%, yet still considerably lower compared to earlier years.
- Net Profit Margin
- The net profit margin ranged modestly between 8.67% and 10.14% from 2017 through 2019, reflecting consistent profitability. In 2020, the margin contracted drastically to -72.45%, mirroring the operational difficulties faced during the period. In 2021, profitability returned but only marginally at 0.94%, substantially below the historic norm.
- Return on Equity (ROE)
- Return on equity exhibited an upward trend from 25.72% in 2017 to 31.04% in 2019, suggesting increasing efficiency in generating shareholder returns. Nevertheless, this metric experienced a profound negative reversal in 2020, recorded at -807.37%, indicating extreme losses relative to equity. In 2021, ROE rebounded to 7.2%, representing recovery but remaining far beneath pre-2020 performance.
- Return on Assets (ROA)
- Return on assets showed minor fluctuations from 6.71% in 2017 to 7.39% in 2019, reflecting stable asset utilization profitability. In 2020, ROA sharply declined to -17.2%, highlighting the impact of losses on asset efficiency. The following year, ROA increased to 0.39%, marking a return to positive but minimal asset-based returns.
Return on Sales
Return on Investment
Gross Profit Margin
Delta Air Lines Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 15,504) | 6,400) | 27,076) | 24,996) | 23,886) | |
| Operating revenue | 29,899) | 17,095) | 47,007) | 44,438) | 41,244) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 51.85% | 37.44% | 57.60% | 56.25% | 57.91% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Uber Technologies Inc. | 46.43% | 53.73% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Operating revenue
= 100 × 15,504 ÷ 29,899 = 51.85%
2 Click competitor name to see calculations.
- Operating Revenue
- The operating revenue showed a consistent increase from 2017 through 2019, climbing from $41,244 million to $47,007 million. However, there was a significant decline in 2020, with revenue dropping sharply to $17,095 million. In 2021, the revenue partially recovered, rising to $29,899 million, though it did not reach the pre-2020 levels.
- Gross Profit
- Gross profit followed a similar pattern as operating revenue. It increased steadily from $23,886 million in 2017 to $27,076 million in 2019. In 2020, gross profit fell drastically to $6,400 million, reflecting a severe contraction in profitability. There was a subsequent recovery in 2021, with gross profit increasing to $15,504 million, yet remaining below the figures seen before 2020.
- Gross Profit Margin
- The gross profit margin exhibited a slight decline from 57.91% in 2017 to 56.25% in 2018, but improved to 57.6% in 2019, indicating relatively stable profitability margins during this period. In 2020, the margin dropped significantly to 37.44%, underscoring a substantial reduction in profitability relative to revenue. By 2021, the margin had improved to 51.85%, demonstrating a partial recovery in operational efficiency, though still below earlier years' margins.
Operating Profit Margin
Delta Air Lines Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 1,886) | (12,469) | 6,618) | 5,264) | 6,114) | |
| Operating revenue | 29,899) | 17,095) | 47,007) | 44,438) | 41,244) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 6.31% | -72.94% | 14.08% | 11.85% | 14.82% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 6.98% | 3.49% | 6.41% | — | — | |
| Uber Technologies Inc. | -21.97% | -43.66% | — | — | — | |
| Union Pacific Corp. | 42.83% | 40.11% | — | — | — | |
| United Airlines Holdings Inc. | -4.15% | -41.41% | — | — | — | |
| United Parcel Service Inc. | 13.17% | 9.08% | — | — | — | |
| Operating Profit Margin, Sector | ||||||
| Transportation | 9.44% | 3.36% | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 9.24% | 3.13% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Operating revenue
= 100 × 1,886 ÷ 29,899 = 6.31%
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income exhibited notable fluctuations over the analyzed period. From 2017 to 2019, there was a positive trend, with operating income increasing from approximately $6.1 billion to $6.6 billion, indicating steady operational profitability. However, in 2020, a significant downturn occurred with a substantial operating loss of about $12.5 billion, reflecting severe operational challenges. By 2021, the company partially recovered, reporting an operating income of around $1.9 billion, though still below pre-2020 levels.
- Operating Revenue
- Operating revenue showed consistent growth from 2017 to 2019, increasing from about $41.2 billion to $47.0 billion, suggesting expanding business activity or increased sales. In 2020, revenue dramatically declined to approximately $17.1 billion, less than half of the previous year's figure, signaling a major impact on the company's top line. By 2021, there was a recovery to roughly $29.9 billion, an improvement from 2020 but still notably below the peak observed in 2019.
- Operating Profit Margin
- The operating profit margin followed a downward trajectory during the initial years, decreasing from 14.82% in 2017 to 11.85% in 2018, before improving to 14.08% in 2019, reflecting relatively efficient cost management and profitability. In 2020, this margin plummeted drastically to negative 72.94%, indicating significant operational losses relative to revenue. The margin rebounded to 6.31% in 2021, suggesting partial recovery but still considerably below the margins prior to 2020.
Net Profit Margin
Delta Air Lines Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 280) | (12,385) | 4,767) | 3,935) | 3,577) | |
| Operating revenue | 29,899) | 17,095) | 47,007) | 44,438) | 41,244) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 0.94% | -72.45% | 10.14% | 8.86% | 8.67% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| FedEx Corp. | 6.23% | 1.86% | 0.77% | — | — | |
| Uber Technologies Inc. | -2.84% | -60.76% | — | — | — | |
| Union Pacific Corp. | 29.92% | 27.38% | — | — | — | |
| United Airlines Holdings Inc. | -7.97% | -46.04% | — | — | — | |
| United Parcel Service Inc. | 13.25% | 1.59% | — | — | — | |
| Net Profit Margin, Sector | ||||||
| Transportation | 9.05% | -2.93% | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Industrials | 5.85% | 0.09% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Net profit margin = 100 × Net income (loss) ÷ Operating revenue
= 100 × 280 ÷ 29,899 = 0.94%
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period examined.
- Net Income (Loss)
- Net income demonstrated a general upward trajectory from 2017 to 2019, increasing from $3,577 million to $4,767 million. However, a significant deterioration occurred in 2020, with a recorded net loss of $12,385 million. This decline was partially reversed in 2021, with net income recovering to $280 million, though still significantly below pre-2020 levels.
- Operating Revenue
- Operating revenue showed consistent growth from 2017 through 2019, rising from $41,244 million to $47,007 million. There was a sharp decline in 2020, with revenue dropping to $17,095 million, reflecting a substantial loss in business activity. The following year, operating revenue rebounded to $29,899 million, indicating a partial recovery but remaining below earlier peak levels.
- Net Profit Margin
- The net profit margin mirrored net income trends, averaging close to 9% to 10% during 2017-2019. The margin turned sharply negative in 2020, plunging to -72.45%, reflective of the net loss and severely impacted profitability. By 2021, the margin improved to 0.94%, signaling a return to modest profitability.
Overall, the data indicates strong financial performance and growth prior to 2020, followed by a severe downturn coinciding with the 2020 period. Partial recovery is evident in 2021, though financial metrics have yet to return to their previous peak conditions. The sharp decline in 2020 and subsequent rebound in 2021 underscore a period of significant volatility and challenge, likely associated with extraordinary external factors.
Return on Equity (ROE)
Delta Air Lines Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 280) | (12,385) | 4,767) | 3,935) | 3,577) | |
| Stockholders’ equity | 3,887) | 1,534) | 15,358) | 13,687) | 13,910) | |
| Profitability Ratio | ||||||
| ROE1 | 7.20% | -807.37% | 31.04% | 28.75% | 25.72% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| FedEx Corp. | 21.64% | 7.03% | 3.04% | — | — | |
| Uber Technologies Inc. | -3.43% | -55.18% | — | — | — | |
| Union Pacific Corp. | 46.06% | 31.54% | — | — | — | |
| United Airlines Holdings Inc. | -39.05% | -118.61% | — | — | — | |
| United Parcel Service Inc. | 90.44% | 204.41% | — | — | — | |
| ROE, Sector | ||||||
| Transportation | 30.78% | -10.82% | — | — | — | |
| ROE, Industry | ||||||
| Industrials | 15.38% | 0.24% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 280 ÷ 3,887 = 7.20%
2 Click competitor name to see calculations.
- Net Income (Loss)
- Over the five-year period, net income showed a generally positive trend until 2019, increasing from 3,577 million USD in 2017 to 4,767 million USD in 2019. However, a significant decline occurred in 2020, resulting in a substantial net loss of 12,385 million USD. In 2021, the company returned to profitability with a net income of 280 million USD, although this figure remains well below the pre-2020 levels.
- Stockholders’ Equity
- Stockholders’ equity remained relatively stable from 2017 to 2019, fluctuating between approximately 13,600 and 15,300 million USD. In 2020, equity sharply declined to 1,534 million USD, likely reflecting the impact of the net loss in that year. By 2021, equity increased to 3,887 million USD, indicating some recovery, though it remains considerably lower than the earlier years.
- Return on Equity (ROE)
- ROE demonstrated a strong upward trend from 25.72% in 2017 to a peak of 31.04% in 2019, reflecting efficient profitability relative to stockholders’ equity. In 2020, the ROE experienced an extreme negative spike to -807.37%, coinciding with the notable net loss and substantial decline in equity. The return improved in 2021 to 7.2%, signaling a partial recovery but still significantly reduced compared to the pre-2020 period.
Return on Assets (ROA)
Delta Air Lines Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 280) | (12,385) | 4,767) | 3,935) | 3,577) | |
| Total assets | 72,459) | 71,996) | 64,532) | 60,266) | 53,292) | |
| Profitability Ratio | ||||||
| ROA1 | 0.39% | -17.20% | 7.39% | 6.53% | 6.71% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| FedEx Corp. | 6.32% | 1.75% | 0.99% | — | — | |
| Uber Technologies Inc. | -1.28% | -20.35% | — | — | — | |
| Union Pacific Corp. | 10.27% | 8.57% | — | — | — | |
| United Airlines Holdings Inc. | -2.88% | -11.87% | — | — | — | |
| United Parcel Service Inc. | 18.57% | 2.15% | — | — | — | |
| ROA, Sector | ||||||
| Transportation | 6.88% | -2.01% | — | — | — | |
| ROA, Industry | ||||||
| Industrials | 3.40% | 0.04% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 280 ÷ 72,459 = 0.39%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income displayed an overall increasing trend from 2017 to 2019, rising from $3,577 million to $4,767 million. However, in 2020, there was a significant reversal, resulting in a net loss of $12,385 million. The following year, 2021, showed a recovery, with net income returning to a positive figure of $280 million, although this was substantially lower than the pre-loss years.
- Total Assets
- Total assets exhibited consistent growth throughout the period. From 2017 to 2021, total assets increased steadily from $53,292 million to $72,459 million, reflecting an expanding asset base despite the fluctuations in profitability.
- Return on Assets (ROA)
- The return on assets followed a pattern aligned with the net income trend. ROA was relatively stable and positive between 2017 and 2019, ranging from 6.53% to 7.39%. In 2020, coinciding with the net loss, ROA experienced a sharp decline to -17.2%, indicating substantial inefficiency in asset utilization. By 2021, ROA slightly improved to 0.39%, demonstrating some recovery but remaining significantly below levels seen prior to 2020.